Group urges CBN to introduce special loans for agric, housing
NAN-AE-16
Loans
By Yetunde Fatungase
Abeokuta, Sept. 20, 2016 (NAN) Association of Professionals for Promotion of Civil Values has requested the Central Bank of Nigeria (CBN) to boost the Nigerian economy with special loans for critical sectors of the economy.
The request is contained in a statement jointly signed by the President of the group, Mr Kunle Ashimi and the Secretary, Mr Ayo Murtala on Tuesday in Abeokuta.
The group of professionals noted in the statement that special loans for critical sectors like agriculture, manufacturing, housing and exports would positively affect the growth of the Nigerian economy.
They decried the current economic recession, which gives room for increasing inflation rate, rising consumer price index, dwindling foreign reserves and gross domestic product.
The group, which cuts across various professions in the country, came out with such solutions to revive the ailing Nigerian economy, after deliberations.
They observed that the cost-push inflation of about 17.6 per cent have characterised the economy in recent times.
The professionals called for certain financial measures, which include lower interest rates for government and investors to borrow money locally as requested by Minister of Finance, Mrs Kemi Adeosun.
Others are special loans for critical economic sectors in order to quickly fix the ailing economy.
“CBN should take the following advice so as to relieve the masses of some of the continued burden occasioned by its previous economic decisions.
“We want CBN to stop increasing Monetary Policy Rate (MPR) as inflation hikes; in fact, reduce MPR by 200 basis points.
“Raise a medium term (5-7years) industry stimulation bond well priced between 9-14 per cent to target Agriculture value chain businesses and export related business such as extraction, processing and milling, storage and logistics.
“Design a collaborative framework between Bank of Industry (BoI), Bank of Agriculture (BoA) and CBN to issue the bond under a private equity company, listed on the Nigeria Stock Exchange (NSE for transparency) to manage the fund alongside commercial banks.
“Reduce the required liquidity ration of banks by 10 per cent with a caveat on specific industry of target (Export, Housing and Agriculture) and ensure full compliance.
“This will push some liquidity into the system.
“Just like CBN is quick to fine defrauding banks on regulatory infractions, the CBN should also openly celebrate banks that have displayed support for industrialisation based on the portion of their balance sheet devoted to such course.
“A Presidential Award should be inaugurated for that along other fiscal and monetary incentives, ‘’ the statement said. (NAN)
YAF/FAT/AFA
Edited by Fatima Sule/Felix Ajide
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